GCA becomes part of Houlihan Lokey

Insights

Despite the challenging macro environment, InsurTech continues to be an active category, with ~$1Bn in financing volume and ~$400MM in M&A volume during Q1 2020

Previous Next

Sector Report: Insurance Technology Q1 2020

EXECUTIVE SUMMARY
Despite the challenging macro environment, InsurTech continues to be an active category, with ~$1Bn in financing volume and ~$400MM in M&A volume during Q1 2020
  • Financings in Q1 2020 (81) were up from the same period in 2019 (72), but the aggregate amount raised declined by ~50% year-over-year
  • M&A activity was tempered with 20 transactions during Q1 2020 as compared to 35 transactions during the same period in 2019

Large financing rounds took place in Q1 but most were completed in either January or February

  • Notable rounds in the quarter included PolicyGenius’ $100MM raise led by KKR/AXA and Justworks’ $50MM raise led by Union Square Ventures/FirstMark, and EIS Group’s strategic financing (GCA advised)

Corporate VCs’ investments in the InsurTech space continued in Q1 as American Family Ventures invested in Clearcover and AXA invested in PolicyGenius

Q1 M&A activity kicked off slower than previous years and was heavily weighted towards European transactions

  • Notable deals included Lovell Minnick’s $276MM acquisition of UK-based Charles Taylor and Allianz’s acquisition of Germany-based ControlExpert (GCA Advised)

In the public markets Data & analytics companies are trading at 5.7xEV/ ’20E Revenue and at 17.2xEV/ ’20E EBITDA, leading public company valuations

Previous Next
Back to Insights